No no tax changes are needed, the normal rate in ireland is 12.5%, apple simply has to pay that for those years.
I dont think ireland has tens of thousands of companies it gives tax exceptions to, let alone basicly let them pay close to no taxes . The very vast mayority of irish companies pay that 12.5%, they dont recieve special "subsidies" like apple does.
First: Apple was charged a tax rate by Irish government (.005 effective). Apple was in compliance with those laws and agreements. Apple is not at fault.
Second: it is reported by business news it is a popular method of paying lower taxes, not just in Ireland. It is also reported to be widely used by businesses. Even if a few hundred companies do this, it will still be a significant impart to world business if those companies have to retroactively pay those taxes.
Third: The US will end up paying this $14 million bill, because US tax law will allow this charge to be written at a loss. Any company could do this, not just Apple.
Forth: Ireland is leading the defense against this charge. It is fight among countries and agencies.
and
Fifth: I HATE the fact companies can do this muck. It is not Apple's fault, they are only doing what everyone else does.
In fact, if Apple did not take advantage of these incentives they could probably be sued by share holders!
The need for tax reform is vital, world wide, and non-too-soon!
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Oh happy day. I love it when the big bad greedy corporate bastards get their comeuppance.
Its not a "big bad greedy
corporate bastards ", its a political corruption that allowed such backroom deals and loopholes to be made in first place. Apple is doing what hundreds of others have done, and theirs is a drop in the bucket when you look at all the others.
Reading the official EU synopsis: (a
radio interview here as well with Commissioner Margrethe Vestager)
This selective tax treatment of Apple in Ireland is illegal under EU state aid rules, because it gives Apple a significant advantage over other businesses that are subject to the same national taxation rules. The Commission can order recovery of illegal state aid for a ten-year period preceding the Commission's first request for information in 2013. Ireland must now recover the unpaid taxes in Ireland from Apple for the years 2003 to 2014 of up to €13 billion, plus interest.
In fact, the tax treatment in Ireland enabled Apple to avoid taxation on almost all profits generated by sales of Apple products in the entire EU Single Market. This is due to Apple's decision to record all sales in Ireland rather than in the countries where the products were sold. This structure is however outside the remit of EU state aid control. If other countries were to require Apple to pay more tax on profits of the two companies over the same period under their national taxation rules, this would reduce the amount to be recovered by Ireland.
Notice that Ireland must go after Apple, which they currently refuse to do.
And if other countries go after Apple for sales, that reduces what Ireland will get, which will further reduce the incentive to go after them.
In effect Ireland will have to air its dirty laundry, and then everyone will see how many companies have these deals.
This will surely make Ireland very uncomfortable with the situation and EU oversight (and ironically US is not happy either), maybe decide being in EU is not worth it?
And you, Shawn UK, knows very well why UK decided to leave.
Yes, this IS very nasty, crooked, and the whole lot of them are tosh, but the problem is those loopholes and secret agreements, in this case created by Irish government.
